Summary:
Clothing prices are expected to rise 10–15% as supply chain disruptions hit the global apparel industry, especially in South Asia.
The root cause is upstream petrochemical disruption due to Middle East conflict, affecting the chain: petrochemicals → polyester → fabrics → garments. Shortages of key inputs (PTA, MEG) are reducing synthetic fiber production.
Polyester price increases are driving substitution into cotton, pushing cotton prices higher, with futures reaching recent highs and speculative demand increasing.
Energy and logistics costs are surging, as gas supply disruptions raise factory power costs, and air freight rates (especially via Gulf hubs like Dubai) have jumped up to 70%.
Manufacturers are absorbing costs for now, due to pre-fixed orders, but margins are being squeezed. Once inventory clears, price increases will pass through to consumers.
Industry faces a “triple shock”: rising costs, delayed payments, and inventory buildup, creating significant pressure on South Asian textile producers.
Retail impact is delayed but inevitable, with analysts expecting noticeable price increases by the end of summer if disruptions persist.